U.S. grains: Wheat futures backpedal as US rains ease weather worries

Chicago | Reuters – U.S. wheat futures backpedaled from their highest levels in nearly two weeks on Thursday as rains eased concerns over dry weather in U.S. growing areas, analysts said.

Corn futures set their highest level in more than a week before finishing slightly lower, and soybeans also slipped.

Traders adjusted positions in the markets before the release on Monday of U.S. Department of Agriculture reports, including estimates for winter wheat plantings and last year’s corn and soybean harvests.

Rains hit U.S. wheat

Ahead of the crop data, traders eyed drought conditions in the Plains, where farmers grow hard red winter wheat used to make bread. About 32% of Kansas, the top U.S. winter wheat producer, was suffering from abnormal dryness as of January 6, up from 28% a week earlier, according to the U.S. Drought Monitor.

However, rain was expected to increase over the next few days, forecasters said.

“It’s been very warm, which has prevented the wheat from fully entering dormancy, but the rains will help the crop a great deal,” said Brian Hoops, president of Midwest Market Solutions.

CBOT March wheat WH26 closed unchanged at $5.18 per bushel, while K.C. March hard red winter wheat KWH26 ended down 1-1/4 cents at $5.30-1/4 per bushel. Both contracts earlier reached their highest levels since December 26.

Prices had jumped on Wednesday after USDA data showed condition ratings for winter wheat declined in Kansas and other Plains states last month.

“Despite the recent dryness, winter wheat ended December in reasonably good shape,” the agency said in a daily weather report on Thursday.

USDA to release crop data

On Monday, analysts expect the USDA to estimate farmers planted 32.413 million acres of winter wheat for harvest in 2026, down from 33.153 million acres planted for harvest in 2025, according to a Reuters poll.

The USDA said separately that exporters sold 132,000 metric tons of U.S. soybeans to China for 2025/26 delivery. Traders said there was talk about larger sales during the previous session.

In exporter Argentina, dry weather has damaged corn crops in Buenos Aires province, though significant rain was forecast in coming days, the Buenos Aires Grains Exchange said.

CBOT March soybeans SH26 closed down 5-3/4 cents at $10.61-1/4 per bushel after touching the highest level since December 29 on Wednesday. CBOT March corn CH26 finished 3/4 cent lower at $4.46 per bushel.

-Reporting by Tom Polansek in Chicago; Daphne Zhang, Ella Cao, and Lewis Jackson in Beijing; and Gus Trompiz in Paris